18th Nov 2019 10:07
(Alliance News) - Real Estate Investors PLC on Monday said it has acquired a fully-let, mixed-use block, located in Royal Leamington Spa, central England, for GBP7.5 million.
The property, which includes twelve units, produces GBP639,500 per year in rent, Real Estate Investors said. Real Estate Investors said the purchase price represented a net initial yield of 8.1%.
The property is multi-occupied, the AIM-listed company said, with a diverse tenant line-up and provides asset management opportunities to increase capital and rental income. It takes Real Estate Investors' contracted rental income to GBP17.5 million, which is up 2.9% in its current financial year.
"Our portfolio continues to trade well, with embedded asset management opportunities that provide us with the ability to continue to enhance income and capital values organically," said Chief Executive Paul Bassi.
He added: "The Midlands is a growth market within which we are uniquely connected and together with our existing cash and bank facilities this makes us ideally placed to make further selective acquisitions during this period of political and economic uncertainty."
Real Estate Investors shares were trading 0.8% lower in London on Monday at 53.05 pence each.
By Evelina Grecenko; [email protected]
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